University of Oulu

Dynamic pricing or not? : pricing models of Finnish taxi dispatch centers under the act on transport services

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Author: Tervo, Erkki1
Organizations: 1University of Oulu, Faculty of Information Technology and Electrical Engineering, Department of Information Processing Science, Information Processing Science
Format: ebook
Version: published version
Access: open
Online Access: PDF Full Text (PDF, 1.7 MB)
Pages: 64
Persistent link:
Language: English
Published: Oulu : E. Tervo, 2020
Publish Date: 2020-12-21
Thesis type: Master's thesis
Tutor: Väyrynen, Karin
Reviewer: Kinnula, Marianne
Väyrynen, Karin
Isomursu, Minna


In 1.7.2018, Finnish government liberalized Finnish taxi markets to create possibilities to introduce new technology, digitalization and new business models into transport sector. Also allowing usage of dynamic pricing in Finnish taxi markets was specifically mentioned. Before the Act on Transport Services came into effect, Finnish regulations specified maximum limits for fares, taxi licenses and operational area where dispatch centers were allowed to operate.

In this study, I will look into how pricing models have evolved after the Act on Transport Services came into effect by collecting data from internet and conducting interviews to understand purposes of the changes more in-depth. Also, I looked into how pricing models have become more dynamic compared to old pricing model, and how dynamic pricing is described in literature. Lastly, I combined list of different aspects that affect to implementation of dynamic pricing.

Currently, none of the Finnish dispatch centers have implemented similar dynamic pricing based on demand and supply in real-time as what Uber uses. But based on results, Finnish dispatch center’s pricing models have evolved to be more dynamic even though Finnish dispatch center’s do not consider them to be dynamic. Also, there are obstacles related to willingness, technology and regulations why Finnish dispatch centers do not consider dynamic pricing similar to what Uber uses to be currently possible to implement.

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Copyright information: © Erkki Tervo, 2020. This publication is copyrighted. You may download, display and print it for your own personal use. Commercial use is prohibited.